5 AI Forces Reshaping the Future of Retail

Based on our conversations with hundreds of community members across Gartner CIO Communities, one of the key focus areas for IT leaders this year is operationalizing AI. They continue to manage stakeholder expectations as they transition from “saving time” to evaluating AI investments and demonstrating measurable gains. 

In this dynamic environment, CIOs have to lead AI initiatives not just with technology – but with culture, data and vision. At the recent New York CIO Community Executive Summit, Tapestry CIO Yang Lu delivered an interactive case study on how they are building an AI-first mindset to drive transformation and business success. 

In her session, 5 AI Forces Reshaping the Future of Retail, Yang shared what the Tapestry team has learned about AI, data strategy, innovation and readiness with her CIO peers. Yang is the Chief Digital and Information Officer for Tapestry, the parent company of Coach and kate spade new york. 

These are learnings from the 5 initiatives they are pursuing in AI:

1. Building the Foundation

Yang shared that her team started with the back end – creating an infrastructure and system that are “global, harmonized and centralized.” They believe this sets them up to innovate across different products and geographies. Yang also said that they built their own patented Data Fabric. She argued that this is an opportune time for CIOs to make their case for investments in infrastructure and data, but she also cautioned not to “wait to test and learn until you have everything.”

1. Reshaping Product Discovery

Yang asked her fellow CIOs in the room if they were personally shopping with AI, and many of her peers reported experimenting. She shared that “consumers are embracing AI-powered shopping, which fundamentally changes product discovery.” Yang also noted that “AI is the new search,” as consumers shift from using Google Search to AI platforms like ChatGPT to find products. “As a result, we have to think about how we reach customers,” she said. If consumers start with ChatGPT, products and brand storytelling need to show up there, as well. She added that companies also have to make a shift from SEO to AEO or AIO (AI optimization) to meet consumers where they are. She urged CIOs to be strategic, think about where they want to be visible and invest in AIO.
 

1. Redefining the Purchase (Customer) Journey

As AI agents enter the picture, Yang explained that Agentic Commerce will change the customer journey – or now, more generally, the purchasing journey. Agentic Commerce is when AI Agents shop on behalf of consumers, including visiting your website, comparing products and completing purchases. Yang shared that some large retailers are trying it out, like Amazon Buy for Me Beta, because it makes the retailer a single destination for shopping. She thinks that while it’s in the early stages now, retailers “should be prepared for agents shopping on behalf of their customers.” For now, Yang said that her team is focused on publishing content and ensuring that the content gets surfaced so that their products will be found regardless of how the purchasing journey takes place.
 

1. Accelerating Product Creation

Yang shared that one area in which they are exploring is AI as a tool in the design process. Their product design teams are using AI to help iterate quickly, speed up the more tedious tasks and then test the concepts with customers. “It’s human led and AI assisted,” she said. “Our creative team brings the magic, but AI can enhance the process.”
 

1. Transforming Demand Forecasting and Planning

Yang highlighted a fifth example in which AI is transforming their work as a retail company, explaining how predictive AI is changing the way they forecast and plan for consumer demand. “AI is helping us figure out how to have the right product, in the right place, at the right time,” she said. Yang said they are also experimenting with an adaptable customer journey on their website where AI can enhance the customer experience in a similar fashion to personalization.

Yang concluded her session by summarizing how they encourage AI innovation and experimentation at the company. She said they organically started AI initiatives with “a team of passionate people willing to develop new things” and then built on their work from there. “There is no playbook for AI – other than empowering teams to iterate and creating an atmosphere where it’s safe to fail,” she shared. “Iteration is the new perfection.”

To participate in more sessions on AI and other critical topics for IT leaders, join your local Gartner CIO Community. Or, if you are already a community member, sign in to the app to explore opportunities to get together and exchange best practices with your CIO peers. 
 

Special thanks to Yang Lu and Tapestry.